MNC Vendors in India – Capgemini

This is a company that workup to the India story rather late but having woken up, is making up for lost time!

After getting nowhere with an organic India growth attempt, Capgemini recognized the need for inorganic growth. And they zeroed in on Kanbay [Capgemini Increase It's Global Presence with Kanbay Deal].

With its specialization in financial services, the acquisition of Kanbay pretty much gave them an entire India business unit – the Financial Services BU – on a platter. Contrast this with the EDS acquisition of MphasiS which got them nothing – at best a low-end India BPO capability and at worst a hodge podge of India resources.

With financial services out of the way, Capgemini is proceeding with great energy to setup other business units in various cities in India.  Staring with as low as 4000 people in 2004, Capgemini has now crossed the 20,000 mark and continue to grow.

Question is: what is their business model for India. Is it capacity leasing or anything different?

As far as I can tell, they are sticking with the tried and tested capacity leasing model and are trying to emulate Accenture in integrating the India capacity with their global operations. Which is not bad at all, considering they were late to the party! And considering the current financial sector meltdown, they are indeed well positioned to capitalize on the bail-out budgets of American financial institutions!